S&P cuts UK outlook amid EU referendum warning
by Katie Allen from on (#B3K0)
Credit rating agency joins other forecasters in warning about the potential damage to the UK economy from holding a referendum
David Cameron's decision to hold a referendum on EU membership has put Britain at greater risk of losing its triple-A credit score, according to Standard & Poor's, the only big ratings agency to still give Britain the top ranking.
Cutting its outlook for UK government debt to "negative" from "stable", the agency highlighted serious risks to the pound and Britain's ability to attract foreign investment were it to break away from the EU. There was also a danger that in the runup to the vote domestic party politics and negotiations with Brussels would divert attention away from the UK's pressing economic problems.
